On January 2 of the current year, BC Co. acquired 1,000 shares of its $10...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 2 of the current year, BC Co. acquired 1,000 shares of its $10 par value common stock for $20,000. On July 1, BC exchanged this stock for land to be held for use as the site of the corporate headquarters. The stock had a fair value of $25 per share on that date. The building on the site was razed, and BC sold the scrap for $2,000. At what amount should the land be capitalized?
A) $25,000
B) $23,000
C) $20,000
D) $18,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
